Currently, there are millions of cryptocurrency holders, and experts predict the number will grow. As the number of cryptocurrency holders increases so as the number of scam victims. There are reasons why cryptocurrency scams are so frequent, and one of them is people do not know how to recognize these scams in the first place. Of course, Bitcoin is famous but it is not 100% secure cause banks and third-party organizations cannot control them. But there are steps that you can take to lower the chances of being a victim.
Crypto lifts off
The internet and other technologies have altered the rules of the game, with cryptocurrencies coming to embody these new cybercrime opportunities. Cryptocurrencies were initially developed by "cypherpunks," or those concerned with privacy. They are decentralized, digital currencies that employ encryption to create anonymous transactions. But since the COVID-19 pandemic, when the price of cryptocurrencies soared up and they became more popular, they have grown to ensnare the brains and wallets of both ordinary people and criminals. Scammers profited from their fame and countless people became a victim of these online scams. The pandemic also disrupted traditional business, which increased reliance on substitutes like bitcoins among people.
False investments
Different types of cryptocurrency or bitcoin scams tend to target different populations. One prey on cryptocurrency investors, who are active traders having risky portfolios. They are young investors mostly fewer than 35 have high incomes, are well-trained, and work in engineering, finance, and IT. In this case, scammers make fake coins or fake exchanges and entice investors to be the first to buy them. Scammers offer larger and fast returns to investors by using a process called initial coin offering. But actually, these coins are never issued so investors are left with nothing. Some reports also say that many initial coin offerings are emerges to be fake, but because of the complicated and developing nature of these new coins and technologies, even trained and experienced investors get fooled.
Anyone thinking about investing in cryptocurrencies should like any risky financial endeavor, conduct extensive due diligence on the offer. Who is the offer's sponsor? What is understood about the business? Is a white paper, a document that outlines a company's product's features and is distributed as information, available?
Swindle payments
Scammers use cryptocurrency as a payment method to move funds from the victims. All demographics and ages are the targets of these Bitcoin scams. Including cases like ransomware, romance scams, computer repair scams, extortion, and Ponzi schemes. Scammers capitalize on the anonymous nature of cryptocurrencies to conceal their identities and avoid consequences. In the recent past, con artists would ask for money through wire transfers or gift cards because they are untraceable, anonymous, and irrevocable. Such payment methods do force potential victims to leave their houses, where they can run into a stranger who can step in and potentially stop them. Contrarily, cryptocurrency can be purchased at any time and from any location. Now if any stranger asks you to send funds via Bitcoins, that could be one of those Bitcoin scams and you should immediately report the user.
